Talking United-Continental on public radio

This afternoon, I was a guest on Warren Olney’s To the Pointprogram on public radio in Santa Monica, Calif. It was an interesting discussion about the United-Continental deal, about airline mergers in general, and even a little bit about why Southwest Airlines is different.

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I never fail to be puzzled and amused by the socialists like the professor out in Berkeley who obviously would like the airline industry renationalized. So he actually thinks the airlines want to gain pricing-power by reducing capacity ? You think ? And why is that wrong, because if they can do that then maybe they’ve got enough cash-flow to survive, and when certain routes become profitable enough new entrants will enter those city-to-city pairs with

attractive profit margins. BTW, one of the biggest impediments to a financially healthy industry has been the Chapter 11 reorg banckrupcy laws which has obviously kept unhealthy airlines from ceasing to exist.

Oh, and Southwest is still the only true point-to-point, though it’s becoming somewhat of a hybrid.

JetBlue & Airtran operate pricipally out of their

JFK & ATL hubs respectively.

Really good stuff Loren ! And glad to see you making appearances from time to time on CNBC.